Company : CAMLIN FINE CHEMICALS
BSE Code : 532834
Group/Index : B
CMP : Rs.56/-
FV : 10
Recommendation : ACCUMULATE
Camlin fine chemicals is an unnoticed company operating in a sector with huge potential.Company is the demerged arm of Camlin ltd,and a manufacturer of some niche fine chemicals used mainly in food processing and pharma sector.It has two divisions - Food processing Chemicals and Industrial products. In the food processing chemicals segment company manufacturing antioxidants which are used mainly in edible oil and other food items to increase shelf life.Its anti oxidants TBHQ and BHA commanding a 30% market share in the global market and it is the market leader in this category.Company having strong tie - up with Kemin Lab of USA for R&D and marketing for the products in food segment.Recently company introduced a new product in the form of a natural spray for giving natural freshness for vegetables and fruits and increasing the shelf life of these items without any harm to the consumers health.This products is filed for patent and it is expected to become a blockbuster product of the company.Another recently launched niche product is Ascorbyl Palmitate for cosmetic and baby food industry.Now company is strengthening its marketing wing throughout Europe and USA. As part of its backward integration programme ,company recently acquired a subsidiary of Borregaard which manufacturing Hydroquinone .There are only five companies in the world manufacturing Hydroquinone which is the main raw material of Camlin Fine Chem's product. Due to short supply of Hydroquinone ,company faced interruptions and low margin situation in the past .This acquisition will ensure the easy availability of raw material and help to improve its margin .Company steadily increasing its sales market share in previous years and its turnover improved from Rs.47 Cr in 2006-2007 to Rs.125 Cr in 2009-2010. Bottom line improved from a loss of Rs.2 cr to a profit of Rs.4.3 Cr in this period .In FY 2011-12 company is guiding a turnover of Rs.200-250 Cr with an improvement in margins.In short , it is a company with good management with clear vision, working in a sector with huge potential . Currently ,this FV 10 company is trading with a P/E multiple of 9 .The parent Camlin ltd with FV Rs.1 is trading with a P/E multiple of 24 .Considering all the positive factors including the global market leader position in certain products, increasing popularity of ready to eat and ready to serve food items in India , initiatives of management to introduce new products and their history - it is a stock to accumulate at current price of Rs.56/-
sir very new to investing,
ReplyDeleteaccumulate means BUY or those who r already holding should buy more?
dear valuepick sir.... a very detailed and a very good analysis.
ReplyDeletehats off to you sir.
can you pls throw some light on sunshield chemicals Mr.Amit Choksey of asian paints fame
thank you in advance
hi sir thanks for ur valuable advise i wanted ur advise in regards to bgr energy i have 50 share at 600-- do u think it is good to share to hold and selan xploration at current market price,,,thanks for ur advise
ReplyDeletesuperb analysis Value Pick, hats off to you.
ReplyDeletePlease your views of BS Transcomm, I have purchased the share around 160/- and now it is trading around 80/-, Please provide your views on why the script price is coming down, is something wrong with the company fundamentals, is it advisable to book loss? or average it now or wait further for price correction?
Also it would be great if we Retail investor get some kind of education is stock market investing.
Once again thanks a lot for your wonderful analysis and helping small investor like me.
Best Regards
Naresh
I too surprised on the movement of BS transcomm. I think it is because of the reasons beyond the fundamentals or the business of the company.If you are ready to wait and willing to take risk better to wait - accepting risk is there
ReplyDeleteCamlin Fine Chem is an excellent company and company increaed the Div from 10 to 20%.
ReplyDeleteBased on what company gave FY12 guidance, it seems cheap and can give good benefit in a years time.
Valu sir,
ReplyDeleteAny thoughts on Modison Metals? The company seems very good fundamentaly and has potential to rise in future.
They make switch gear contacts for MNCs and is a reputed name in the industry.
Pls share any info you may have.
Thans
Sir any response would be widely welcome.
ReplyDeleteThnx
I have been watching this company and after acquisition of Italian company the Rawmaterial will be available cheaper and hence the margins will improve.
ReplyDeleteVery good company to buy for atleast 1 year
Dear Rishab
ReplyDeleteNot tracking Modison Metal
It was good to read about an undervalued stock. Truly the tip yielded good return, almost 80% in three months.
ReplyDeleteCan valuepick throw some light on Geodesic Limited. I am invested in it @Rs 130. Seems to me a good company, profit rising continuously year after year but price showing opposite movement (dipping south). Please advice. Thank you in advance.
Boss what happened here....you had told to accumulate ths at 56... Cprice now to 18 !!!!!
ReplyDeleteWhen I recommended it @ Rs.56 its FV was 10 and now it divided into 2 which means 1 share is equal to 5 shares now.
Delete